Promoting institutional connectivity in the Asia Pacific region: a study of supply chain and trade in services

Ishido Hikari

No 439, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: This paper analyzes "institutional connectivity", or the degree of seamless trade in services centering on the distribution sector. Foreign equity participation in mode 3 (commercial presence) of trade in services and business firms’ investment performance has been studied closely. Net economic benefits of transparent institutional connectivity in the wholesale sector have also been revealed statistically in the case of Japan’s bilateral FTAs with other APEC members. Given these results, APEC could work on establishing its own harmonized "service trade commitment table" with only the foreign capital participation as its simple policy restriction. This would surely enhance an APEC-wide, institutional supply chain connectivity.

Keywords: Asia; Japan; Trade policy; International economic integration; Service industries; TPP (Trans-Pacific Partnership); AFAS (ASEAN Framework Agreement on Services); Trade in services; Supply chain (search for similar items in EconPapers)
JEL-codes: F13 F15 (search for similar items in EconPapers)
Date: 2014-01-01
New Economics Papers: this item is included in nep-int and nep-sea
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 439. 2014-01-01

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